CMHC crunches condo ownership breakdown

CMHC crunches condo ownership breakdown

Brokers and industry professionals have often wondered what percentage of condos in Canada’s two biggest markets are owned by investors and the data has finally been compiled.

“As information on condominium investment is rather limited at this time, CMHC has gathered new data on a segment of domestic condominium investment activity in Toronto and Vancouver,” Bob Dugan, chief economist at CMHC’s Market Analysis Centre said in an official release. “While the results are not representative of other markets or all types of investors, the survey helps to shed some light on the profile and purchasing motivations of a segment of condominium investors in Toronto and Vancouver.”

According to CMHC, 82.9 per cent of condominium owners reside in their unit while 17.1 per cent are owned by condo investors.

The survey also found that “about half” of condo investors in Toronto and Vancouver currently rent out their last purchased unit.

However, one glaring omission from the survey are foreign investors, as it only included condo owners who reside inside their CMAs.

“CMHC continues to explore opportunities to enhance the availability of information on foreign and corporate investment activities in the housing market,” Dugan said.

The survey also found that:

58.4% expect to keep their last purchased unit for more than 5 years;

17.9 % for 2 to 5 years;

7.6% for less than two years, and 16.1% did not know or answer;

11.9% of respondents said they bought their last secondary condominium unit with the intention of reselling it for a profit within a year of purchase.

This market is about to collapse in Vancouver and Toronto . Condo fees have become far more than the financiers can feel safe about. Added to a mortgage they will take many buyers out of the market who will look for rentals that they can feel comfortable with in a market that is heading south.